Question

The resulting decrease in the per-unit cost of production that comes from carefully decreasing output is known as economies of scale. Select one: True False
A Canadian paper-products firm purchases raw materials from a U.S. logging firm just across the border. The U.S. dollar has been steadily appreciating against the Canadian dollar. The contract calls for payment to be made in U.S. dollars within 30 days. From the following list which is most likely for the Canadian firm? Select one: a. Cost the firm more in Canadian dollars than originally expected b. there will be no impact since Canada and the U.S. are both members of NAFTA which has a common currency c.pay the bill in Euros since Canada is a full member of the European Union d. Cost the firm less in Canadian dollars than originally expected Next page
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Answer #1

Ques1 false, economies of scale is achieved when cost is reduced while production keeps on rising.

Ques2 a. Cost firm more in Canadian dollars, US dollars are appreciating against the Canadian dollars, I.e the Canadian dollars have depreciated against US Dollars which means for the same quantity of good more canadCan dollars have to be paid.

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